PREM Rugby is attracting growing interest from potential new investors as the league enters a new era.
With promotion and relegation no longer part of the competition, clubs can now only enter the league through off-field investment and expansion.
That new model has already attracted several major investors.
Dyson’s investment in Bath, Red Bull’s takeover of Newcastle Red Bulls and Black Knight’s purchase of Exeter Chiefs are among the biggest moves so far. All three investors have significant financial backing.
According to The Guardian, Harlequins, Northampton Saints and Gloucester are now attracting serious interest from overseas investors.
A Guardian source familiar with the talks said several high-net-worth individuals from the United States and Middle East have made approaches.
Consumer brands are also showing more interest following Red Bull’s takeover of Newcastle last year.
PREM Rugby chief executive Simon Massie-Taylor told The Guardian earlier this week that he expects “two or three more” deals involving clubs to be completed over the next two years.
There has also been interest in investing directly in PREM Rugby. US private equity firm RedBird Capital Partners has held early talks about buying a stake in the league.
RedBird already has a major sporting portfolio, including a controlling interest in Serie A side AC Milan and a minority stake in Fenway Sports Group, which owns Liverpool and the Boston Red Sox.
However, those talks have not moved forward since initial informal discussions took place in July.
PREM Rugby is instead focused on building its relationship with existing private equity partner CVC Capital Partners. Investment talks involving several clubs are still understood to be progressing.
Northampton’s on-field success could be one reason behind the interest, while the club is also home to England star Henry Pollock, who signed a new long-term contract this week.
The growing interest suggests the new franchise model is bringing fresh attention to English rugby.
With major investors entering the sport and clubs such as Northampton benefiting from the rise of players like Pollock, further investment could follow as PREM Rugby continues to develop.
The investment boom has seemingly already reached Champ Rugby, with television presenter Nick Knowles becoming a rugby club owner after investing in Championship side Cornish Pirates as part of an ambitious new era for the club.
The DIY SOS star has been confirmed as a new shareholder in the Cornish outfit. Knowles has also brought in a film crew to produce a documentary series exploring the importance of rugby in Cornwall, as well as the Pirates' plans for regeneration and growth following fresh investment from the United States.
